Apple Inc. (AAPL)..And Is This the End for VeriFone Systems Inc (PAY)?

Morgan Stanley analyst Katy Huberty said Apple’s mobile payment system could be unveiled as early as next week, at the 2013 WWDC.

Without knowing the details, claims that Apple will crush VeriFone simply can’t be made. Apple’s system — if it exists at all — could actually supplement VeriFone’s business. The two companies have worked together in the past.

Nevertheless, if Apple wanted to disrupt the payment business, they certainly could. And it’s not clear how VeriFone would be effected.

eBay Inc (NASDAQ:EBAY)’s PayPal has expanded into in-person payments

eBay Inc (NASDAQ:EBAY)’s PayPal has long been a popular way to pay for things online. But recently, the company has started to bring PayPal into the world of in-person payments, partnering with stores like The Home Depot, Inc. (NYSE:HD) to allow customers to buy things with their PayPal account.

eBay Inc (NASDAQ:EBAY)’s system does not directly compete with VeriFone’s hardware. As can be seen from this picture of eBay CEO John Donahoe testing the system, it works with existing solutions (in this case, a machine from VeriFone Systems Inc (NYSE:PAY) competitor Ingenico SA).

But that said, eBay’s entrance into the space just raises the possibility of more disruption. Paying with PayPal doesn’t require a traditional credit card, only a pin number.

The mobile payment revolution

Despite a management shakeup, VeriFone just can’t seem to get its act together. Right now, its problems might be tied more to its own execution failures than anything else, but in the future, new innovations could really start to hamper results.

The payment area is clearly ripe for disruption. Square is VeriFone Systems Inc (NYSE:PAY)’s biggest new competitor, while innovations from established technology companies like Apple and eBay could eventually take a toll.

The bottom line is that VeriFone seems like a company misfiring in an increasingly competitive market. Until management can demonstrate a convincing turnaround strategy, investors might wish to stay away.

The article Is This the End for VeriFone? originally appeared on Fool.com and is written by Salvatore “Sam” Mattera.

Joe Kurtz has no position in any stocks mentioned. The Motley Fool recommends Apple and eBay. The Motley Fool owns shares of Apple and eBay. Salvatore “Sam” is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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